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9 Aug 2019
EUR/USD technical analysis: Fiber hugs 1.1200 as Italian politics dents the sentiment on the single currency
- Italian political uncertainties are keeping the sentiment sour on the EUR.
- The critical level to beat for bears is the 1.1174 support.
EUR/USD daily chart
EUR/USD is consolidating the recent up move for the fourth consecutive day while being capped by the 1.1253 resistance and the 50/100-day simple moving averages (DSMAs). The greenback is currently stable as the 10-year bond yields are consolidating losses and the US equity market had a strong rebound in the last three days. On the other hand, the sentiment on the EUR is deteriorating due to political uncertainties in Italy.
EUR/USD 4-hour chart
The market is currently contained below the 1.1220 resistance and the 200 SMA. Bears would need a clear break below the 1.1774 key support. In such event, EUR/USD could re-visit 1.1138 and 1.1105 to the downside, according to the Technical Confluences Indicator.
EUR/USD 30-minute chart
The market is trading in a very tight range coiling around the 1.1200 figure and the main SMAs, all-in-all suggesting a potential correction down. On the flip side, buyers would need a daily close above 1.1253 resistance to resume the bull trend and get to the 1.1282 resistance to the upside.
Additional key levels